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Tax Credit for Purchasing American Agricultural Products

This new law introduces a tax credit for businesses that purchase and use American agricultural products for food production. The aim is to encourage support for domestic farmers and producers. Businesses that do not meet a specified threshold for domestic product purchases may lose eligibility for this credit.
Key points
Businesses can receive a tax credit of up to $100 million annually for purchasing American agricultural products.
The credit amount depends on the percentage of domestic agricultural products used in production.
Starting in 2026, businesses must meet increasing percentage thresholds for domestic product purchases to qualify for the credit (e.g., 50% in 2026, up to 85% in 2033).
The Department of Agriculture will create a list of products that cannot be feasibly produced in the U.S., which will be exempt from these rules.
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Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_1707
Sponsor: Rep. Kustoff, David [R-TN-8]
Process start date: 2025-02-27